|GTECH Holdings Corporation has recently announced that it is to take over Interlott Technologies Inc—a leading provider of instant ticket vending machines (ITVM) for the lottery industry worldwide.|
The acquisition was approved in a special meeting of Interlott shareholders, last Wednesday. The common stock of Interlott ceased the following day—which means the Ohio-based company will no longer be on the American Exchange.
GTECH President and CEO W. Bruce Turner said, 'By combining GTECH's online technology expertise and Interlott's proven and industry-leading ITVM technology, we are able to deliver not only new lottery products for consumers, but also new capabilities and services for retailers and lottery customers. Online automation will also make it possible for GTECH customers to combine management reporting of both online and instant-ticket-vending activity.'
Interlott has roughly 65 million shares of common stocks outstanding—giving the deal an outstanding of $58.5 million.
Mr Turner added: “The online ITVM concept is part of a larger trend toward self-service in retail,' continued Turner. 'Consumers have demonstrated a preference for self-service, and retailers have employed self-service strategies to increase sales without having to increase staffing requirements. GTECH has several initiatives underway to bring the self-service functionality to the lottery market. The Interlott acquisition will enhance and accelerate those efforts.'
The shareholders were given the opportunity to elect to receive $9 in cash or a number of GTECH shares having the value of $9 or a combination of both subject to adjustment so that the aggregate consideration paid by GTECH 51.5 per cent in stock and 48.5 per cent in cash.